On October 16, Philadelphia City Council approved a proposed ordinance that would provide tax cuts to those businesses that offer a $12-per-hour wage to service industry employees. If the bill is signed into law by Mayor Nutter, businesses would see a $5,000 tax credit for each new full-time employee they hire as long as their pay rate is set at $12 per-hour or higher. This tax break would stay into effect for five years for each employee hired.

According to the Philadelphia Inquirer, “The bill is an extension of a tax-credit program that has been around since 2002.The bill approved Thursday is different from the 2002 program, in that the tax break lasts five years for each job created. That is significantly longer than the current program, which allows the credit for only one year.”

Councilman W. Wilson Goode Jr. sees this proposed ordinance as a way to raise wages in the city.

According to the Philadelphia Inquirer, "City Council is going with a tax credit because it cannot force private businesses to pay the city's minimum-wage standard. Only Harrisburg has that authority."